Ripley Corp

RIPLEY CORP
9th Annual Global Emerging Markets Conference
Deutsche Bank
September 15 - 17, 2010
CONTENTS
RIPLEY CORP
STRATEGIC PLAN
2Q2010 RESULTS
CONCLUSIONS
Our Assets
• Revenues Jun-10 LTM: US$ 1,919 m
• Loan Portfolio: US$ 1,271 m
• 1.8 million customers using Tarjeta Ripley
• 51 stores in the best commercial areas of Chile
and Peru with more than 344,000 m2 of selling
space
• 112,000 m2 weighted selling space in shopping
malls
• 48 branches of Banco Ripley in Chile
• 16 branches of Banco Ripley in Peru
• Second place on TOM in Chile
• Most recognized brand in department stores in
Peru
Figures in nominal CLP. Converted to US$ using June 30th FX rate of $547.19/US$
54 years of History
1956
First store in Santiago
Credit business starts
1985
First department store
First store outside Santiago
1993
2007
Acquisition of 22.5% of Nuevos Desarrollos S.A. and sale of the participation in mature malls
Opening Los Andes store in Chile and Chiclayo store in Peru
Financial Statements under IFRS
4
2003
Ripley Corp IPO
First store outside Lima (Trujillo)
First shopping mall of Aventura Plaza S.A. JV in Peru
2009
1997
Insurance brokerage and e-commerce
Opening of Hong Kong office / local bond for US$257 m
2005
1986
Ripley Parque Arauco biggest store in South America / New image positioning
First store in Peru
2000
1976
2010
Shareholders Structure
• Calderon family has been connected to the retail business for over 50 years
Major Shareholders
Free Float*
Free Float
19.5%
Calderon Group
65.5%
Stockbrokers
& Retail
49.2%
Pension
Funds
13.8%
International
Investors
6.5%
Saieh Group
15.0%
Mutual Funds
29.3%
Insurance
Companies
1.3%
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*Figures as of August 28th, 2010
Business Units
6
Retail Business
Chile
Revenues evolution MUS$
Second place on TOM
7
Peru
Revenues evolution MUS$
Second largest department store company
• 39 stores
• 12 stores
• Selling space 237,210 m2
• Selling space 106,575 m2
• 23.6% Market Share
• 46% Market Share
Figures in nominal CLP. Converted to US$ using June 30th FX rate of $547.19/US$
Financial Retail Business
Chile
Revenues and Loan Portfolio
Important actor in consumer loan market
• Gross Loan Portfolio of Tarjeta Ripley: US$ 636 m
• Gross Loan Portfolio of Banco Ripley: US$ 364 m
• 6 .0million Tarjeta Ripley cards issued
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Figures in nominal CLP. Converted to US$ using June 30th FX rate of $547.19/US$
Peru
Revenues and Loan Portfolio
Important player in credit cards loan market
• Gross Loan Portfolio of Tarjeta Ripley: US$ 272 m
• 2.3 million cards issued
Real Estate Business
Strategy is to focus in the development of
new projects with higher growth with the
leading company of the industry
• Chile
• Property of 22.5% of Nuevos Desarrollos S.A.
(77.5% subsidiary of Mall Plaza)
Chile
Marina Arauco
57,968
33.0
45,911
33.0
Mall Plaza Sur
Mall Plaza Alameda
74,583
57,355
22.5
22.5
Total selling space*
63,966
Peru
Selling space (m2)
44,114
76,460
• 2 shopping malls
Total selling space*
48,230
• 5 sites for development
TOTAL SELLING SPACE*
* Weighted by ownership %
• Peru
• Property of 40% in JV Aventura Plaza S.A. with
Falabella (40%) and Grupo Plaza (20%)
• 2 shopping malls
• 2 in construction and other 4 planned to
open before 2014
Ownwership (%)
Mall del Centro de Curico
Aventura Plaza Trujillo
Aventura Plaza Bellavista
• 33% of Mall Marina Arauco and Curico
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Selling space (m2)
112,196
Ownwership (%)
40.0
40.0
CONTENTS
RIPLEY CORP
STRATEGIC PLAN
2Q2010 RESULTS
CONCLUSIONS
Ripley Corp – results in line
with our strategy
2008:
Reorganization
“Change business
and organizational
model”
Client
Integration
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2009:
Ripley 2.0
2010:
“Improve profitability
and selling space in
Peru”
“Recharming the
customer”
Efficiency
Management
Strategic Pillars
CLIENT
EFFICIENCY
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INTEGRATION
MANAGEMENT
Focused on the main value source:
“The Client”
• Adding new brands and increasing the
value of current ones
• Increasing the number of clothing
collections per season
• Optimizing price/quality ratio
through better design and materials
• Improving the shopping experience
• Store remodeling
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Important increase in Sales
9 Retail revenues increased 30.4% in Ripley Chile versus 2Q2009
9 Retail revenues increased 16.9% in Ripley Peru versus 2Q2009
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Accompained by higher growth
in the retail margin
9 Growth of margins in the retail business confirm that our strategy is on the
right way
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Integration, competitive strength
Financial retail integration
9
9
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Focused on store customer
The best of both worlds in one place
Increasing the customer data base
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9 Tarjeta Ripley Chile have quadrupled new accounts activation
thanks in large part to the implementation of the “Captacion
Express" program
High level management
1) Management change, highly experienced
professionals
2) Removing redundant areas and capturing
synergies
3) Management team committed and aligned
with the strategic plan
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Committed to efficiency
and expenses control
• New distribution center in
Chile
• Focus on reducing costs
• Inventory Turnover control
• Optimization process
• “State of the art” software
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Improving key indicators in retail business
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Reducing expenses
RIPLEY CHILE EXPENSES
2nd Quarter
1st Semester
-2.2%
-5.8%
-0.4%
-4.0%
9 SGA’s/m2 of Ripley Chile decreased 2.2% versus 2Q2009
9 SGA’s of Ripley Chile decreased 4.0% versus 1S2009
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Figures in nominal CLP. Converted to US$ using June 30th FX rate of $547.19/US$
Ripley Corp – Sustainable growth and profitable
Increase profitability and selling space in Peru based on our
strategic pillars
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CONTENTS
RIPLEY CORP
STRATEGIC PLAN
2Q2010 RESULTS
CONCLUSIONS
Ripley Corp - Results 2Q2010
9 Gross profit increased 37.8% versus 2Q2009
9 Operating income reached $19,196 million
9 EBITDA increased 1,238.4% versus 2Q2009 reaching $28,098 million
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Ripley Corp – Results 1S2010
9 Net Income reached $16,245 million, improving 31.1% versus 1S2009
9 EBITDA in the second semestre reached $41,519 million
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Ripley Perú – Opening store plan
9 Ripley Piura – Estimated opening : Dic 2010
9 Ripley Arequipa – Estimated opening : Dic 2010 (Aventura Plaza)
9 Ripley Lima – Estimated opening : Dic 2010
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CONTENTS
RIPLEY CORP
STRATEGIC PLAN
2Q2010 RESULTS
CONCLUSIONS
Ripley Corp – Conclusions
9Growth based on our strategic pillars
9 Client
9 Integration
9 Management
9 Efficiency
92010: Improve Ripley Corp profitability and selling space in Peru
9 Growth retail margin
9 Increase loan portfolio expanding client base
9 Reduce Cost
93 new openings in Peru this year
92011 +: Sustainable growth and profitability
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Contact Information
Speaker
Juan Diuana – Ripley Corp CFO
More Information
www.ripley.cl
Investor Relations Contact
Alexander Cahn
[email protected]
(56-2) 694 1042
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Disclaimer
This presentation contains forward-looking statements, including
statements regarding the intent, belief or current expectations
of the Company and its management. Investors are cautioned
that any such forward-looking statements are not guarantee of
future performance and involve a number of risks and
uncertainties including, but not limited to, the risks detailed in
the company’s financial statements, and the fact that actual
results could differ materially from those indicated by such
forward-looking statements.
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